Newsletter — January 29, 2026 | | |
You’re invited: Legislative retail reception
You’re warmly invited to a special reception where you will have the opportunity to connect with your Washington State legislators.
Join us on Wednesday, February 4, 2026, from 5:30 p.m. to 8:00 p.m. at the Lord Mansion in Olympia. This reception offers a valuable opportunity to discuss the challenges and opportunities facing the retail industry, including navigating a rapidly changing landscape while keeping businesses thriving, employees safe, and customers engaged.
This event is designed to foster open and constructive conversation between retailers and policymakers about issues impacting retail across Washington.
Don’t miss your chance to be part of the conversation shaping the future of retail. Please RSVP by emailing kdavies@washingtonretail.org or calling (360) 790-0359.
We look forward to seeing you there.
| | |
POLICY
ECONOMY
ON THE LOCAL FRONT
POLITICAL NEWS
RETAIL THEFT & PUBLIC SAFETY
TRENDS
| | |
What we are tracking — WR Legislative Hot List
WR is closely monitoring the bills that have advanced through the legislative process. Each week, we’ll spotlight our weekly “hot list” key legislation that could have the most significant impact on WR members.
Grocery Algorithmic Pricing (HB 2481)
This bill addresses the use of algorithmic pricing in grocery retail. Proponents argue the legislation is necessary to prevent discriminatory individualized pricing through digital price tags; however, as drafted, the bill is overly broad and would effectively prohibit routine and consumer-friendly pricing practices, including sales, flash discounts, coupons, and targeted discounts for groups such as seniors and veterans. WR is working closely with other grocery retail associations to pursue amendments that would narrow the bill’s scope and preserve standard pricing practices.
Position: WR opposes this bill, the goal is to move toward a neutral position through meaningful amendments.
Commercial Electronic Mail Act (CEMA) (SB 5976/HB 2274)
CEMA Legislation Gains momentum: Washington’s Commercial Electronic Mail Act (CEMA) legislation advanced last week with a public hearing on House Bill 2274 in the House Consumer Protection & Business Committee. The bill seeks to clarify the law following a recent court interpretation that has triggered a surge in litigation over routine marketing emails. Momentum increased following the public hearing, and the bill has since been amended to address concerns raised by the Attorney General’s Office (AGO), with executive scheduled in the House committee on January 27, there was no action taken on this bill. The Senate companion bill is scheduled for a public hearing on January 29. WR issued an Action Alert urging subscribers to email the House Consumer Protection & Business Committee members and ask them to vote in support of HB 2274 as amended, while actively organizing testimony panels featuring small business owners, retailers, and legal experts to build strong support. Discussions with the AGO have been productive, with the office providing constructive feedback rather than outright opposition and expected to submit formal comments ahead of the next hearing. WR will continue vote-counting, finalize amendment strategy, and coordinate testimony panels in preparation for upcoming committee action and hearings.
Position: WR supports this bill.
Status: Public hearing on January 29.
Millionaire's Tax
Governor Ferguson proposed “Millionaire’s Tax” income tax legislation, noting that draft language is circulating and will be shared with PGAC members along with a summary. The proposal would impose a 9.9% income tax on Washington taxable income for individuals and would apply to pass-through entities such as LLCs, PLLCs, S-Corps, and partnerships. While the bill attempts to limit impacts on employers, it includes credit mechanisms for taxes paid to other states and for Washington B&O and public utility taxes. Due to its broad reach and potential impacts on many taxpayers and small businesses, careful review is required.
Position: WR has concerns with this tax.
Pathway to unionizing security guard by establishing an industry standard board (HB 2524)
This bill would establish an industry standards board for security guards with authority to set requirements for training, wages, benefits, and working conditions, create a private right of action, and fund its operations through workers’ compensation premium dollars. WR is opposing the bill due to concerns about significant cost increases, added regulatory burden, and heightened litigation exposure for employers. A public hearing is scheduled for next Tuesday.
Position: WR opposes this bill.
| | |
Plastic bag bans: Unintended consequences on sustainability
Reducing waste is a shared goal for retailers and communities alike. Members of the American Retailers’ Plastic Bag Alliance (ARPBA) have invested hundreds of millions of dollars in recycling innovations and education to support a more sustainable future. Yet experience from across the country shows that even well-intentioned plastic bag bans can fall short - and sometimes backfire.
More Plastic, Not Less
While bag bans may seem like a straightforward solution, data tells a different story. After New Jersey’s 2022 ban on single-use plastic and paper bags, total bag units dropped over 60%. However, plastic use nearly tripled, as retailers switched to thicker polypropylene “reusable” bags. Similarly, Washington’s statewide ban has led to a 17% increase in plastic use by weight due to heavier alternative bags.
Minimal Impact on Litter and Waste
Plastic retail bags make up only 0.5% of U.S. municipal waste (EPA) and account for under 1–2% of litter. In California, one year after the statewide bag ban and fee, plastic bag litter fell by just 0.2% as a share of total litter. These numbers suggest that bans alone do little to meaningfully reduce waste or litter.
Life-Cycle Impacts Matter
Research from Recyc-Québec, the Danish EPA, the UK Environment Agency, and Clemson University shows that lightweight plastic bags often have lower overall environmental impacts than paper or most reusable alternatives, unless those alternatives are reused many times. When shoppers shift to paper or non-woven polypropylene bags that aren’t reused enough, communities can actually see higher material use, energy consumption, and emissions, undermining the environmental benefits policymakers hoped to achieve.
A Better Approach: Education and Recycling
Rather than relying solely on bans, community education and access to recycling solutions have proven more effective. Tools like the Plastic Film Recycling map help shoppers find drop-off centers for plastic bags and film, encouraging proper recycling and reuse.
Retailers remain committed to sustainability, but solutions must be practical, science-based, and effective. Thoughtful approaches that combine education, innovation, and responsible recycling can reduce waste without creating unintended environmental consequences.
| | |
Washington lawmakers review proposal addressing retail pricing technologies
Washington lawmakers are considering legislation that would limit certain retail pricing practices as part of a broader discussion about affordability and emerging technology. HB 2481, introduced during the 2026 legislative session, focuses on what supporters describe as surveillance pricing and surge pricing, particularly in grocery stores.
Surge pricing generally refers to price changes based on demand, while surveillance pricing involves the use of consumer data and artificial intelligence to set individualized prices. Supporters of the bill argue that these practices can be difficult for consumers to detect and may lead to unequal outcomes. The proposal would prohibit personalized pricing based on consumer data for groceries, restrict surge pricing on essential goods, and pause the rollout of electronic shelf labels until further review. Violations would be enforced under the Consumer Protection Act.
During legislative testimony, proponents cited national research showing that companies can track extensive online and purchasing data to tailor prices. A recent investigation into grocery delivery services found that price differences among consumers could result in some households paying up to $1,200 more per year. Supporters also raised concerns about transparency and the potential impact on access to affordable food.
Retail and grocery industry groups testified in opposition, emphasizing shared concerns about discriminatory pricing while cautioning against unintended consequences. Crystal Leatherman, WR’s Director of Policy & Government Affairs stated, “We share the goal of preventing discriminatory pricing, but we are opposed to the legislation as written due to its broad language.” She added that applying the Consumer Protection Act could expose retailers to class action litigation and urged lawmakers to clarify definitions to reduce uncertainty.
The bill has not yet been scheduled for a vote. If approved and signed into law, it would take effect 90 days after the Legislature adjourns in March.
SeattleTimes.com
| | At the Employment Security Department in Olympia, the paid family and medical leave program has seen astounding growth in less than six years of existence, writes the author. (Ellen M. Banner / The Seattle Times, 2025) | |
Alarm is sounding on WA’s social insurance programs. Olympia must act
By Mark Schoesler
Special to The Seattle Times
Published on Jan. 21, 2026
Olympia, we have a problem. And no, it’s not just the billion-dollar shortfall facing the general fund that you might have already heard about. Three programs comprising the backbone of Washington’s social-insurance safety net — paid family and medical leave, unemployment insurance and workers’ compensation — all are quietly facing severe fiscal turmoil.
At the Employment Security Department, the paid family and medical leave program has seen astounding growth in less than six years of existence. By 2022, after being notified that PFML was facing insolvency, lawmakers took action based on stakeholders’ recommendations to get the program back on track. But even with those changes, program use has continued to skyrocket and benefit costs have repeatedly ballooned following new legislation.
Once again, ESD projects the program is headed toward drastic insolvency. Estimates show PFML being at least $350 million in the red by 2029.
If structural changes aren’t made soon to stabilize what has become an unsustainable program, it may go belly-up. Legislators need to rein in the program’s excesses before it goes bankrupt. We must also ensure that any bill expanding the program is reviewed by the Legislature’s fiscal committees.
ESD also projects new trouble ahead for the state’s unemployment insurance program. Until recently, Washington has enjoyed one of the most stable UI programs in the country, while providing the highest benefit available nationally. It’s why we were able to get through the pandemic and provide for workers without taking federal loans like many other states.
But a new analysis of the UI fund now shows there will not be enough in the fund to cover the reserves required by law. The agency’s fix? A “solvency surcharge” — that’s Olympia-speak for about $700 million in additional taxes imposed on employers. Rather than force even more taxes on business, especially taxes automatically imposed without legislative input, we need to explore possible program changes that would avoid the need for a tax in the first place.
| | |
Holiday spending ends 2025 on strong note
New retail sales data indicates a solid finish to the 2025 holiday season, with consumer spending meeting the upper end of national forecasts. According to the CNBC and NRF Retail Monitor, holiday sales from November 1 through December 31 increased 4.1 percent compared with the same period in 2024, aligning with expectations for growth between 3.7 percent and 4.2 percent and total sales of just over $1 trillion.
December played a key role in the overall performance. Total retail sales, excluding automobile dealers and gasoline stations, rose 1.26 percent from November and were up 3.54 percent year over year. Core retail sales, which also exclude restaurants, increased 1.6 percent month over month and 3.58 percent year over year. A late Thanksgiving shifted Cyber Monday into December, adding an additional high volume shopping day to the month’s results.
Across the full year, Retail Monitor data showed total retail sales up 4.93 percent in 2025, while core sales increased 5.08 percent compared with 2024. Unlike survey-based estimates, the Retail Monitor uses anonymized credit and debit card transaction data, providing a detailed snapshot of actual consumer spending.
Six of nine retail categories posted year-over-year gains in December. Clothing and accessories, sporting goods, and digital products led growth, while grocery, health, and general merchandise stores also saw increases. Some categories, including building and garden supplies, furniture, and electronics, experienced modest annual declines despite month-over-month improvements.
Overall, the data suggests consumers remained engaged during the holiday season, supporting steady retail activity as the year closed.
| | |
Lunar New Year commerce trends and implications for retailers
Chinese New Year (Lunar New Year) has evolved into one of the most influential commercial periods worldwide, shaping consumer behavior well beyond its cultural origins. In 2025, more than two billion people participated globally, generating an estimated $1.5 trillion in consumer spending. China remained the primary driver of activity, while Southeast Asia played a growing role as a regional e commerce hub. During the eight-day holiday period, consumer-related industries saw double digit growth, with increases across goods, services, travel, and logistics.
Looking ahead to 2026, advertising investment is expected to continue rising. Global advertising spend is projected to exceed $1 trillion for the first time, with Asia Pacific accounting for roughly $376.4 billion, or about 5.4 percent year over year growth. China is forecast to grow even faster than the regional average. These trends matter for retailers because holiday periods such as Chinese New Year often influence annual marketing budgets and media planning decisions. Digital and data driven channels are expected to dominate, with algorithm driven advertising projected to represent the majority of total spend.
Consumer behavior around Chinese New Year increasingly reflects a blended shopping journey. Research and browsing often begin weeks in advance through digital channels, while in store purchases intensify closer to the holiday for food, gifts, and last-minute needs. Across Southeast Asia, a majority of shoppers report researching online before buying offline, highlighting the importance of integrated online and physical retail strategies.
Overall, Chinese New Year illustrates broader shifts in consumer expectations. Shoppers start earlier, move fluidly across channels, and respond to experiences that feel relevant and convenient. For retailers and brands, these patterns underscore the value of coordinated planning, consistent messaging, and thoughtful use of data to meet customers where they are throughout the shopping journey.
| | |
Seahawks championship win drives surge for local retailers
Seattle’s NFC Championship victory is creating immediate economic ripple effects for local retailers, highlighting how major sports moments can translate into rapid consumer demand. Within hours of the Seahawks securing their conference title, fans across the region and beyond began purchasing championship apparel and memorabilia, putting pressure on both online platforms and fulfillment operations.
Seattle-based retailer Simply Seattle reported an unprecedented spike in activity following the win, including website traffic levels high enough to temporarily disrupt online sales. The company, which designs and produces much of its sports merchandise in house, quickly moved into full production mode to meet demand during the narrow window between the championship game and the Super Bowl. Orders flowed in from Washington and from fans nationwide, reflecting the team’s broad following.
The two week period leading up to Super Bowl LX on February 8 in Santa Clara, California is particularly important for retailers. Businesses must anticipate potential outcomes well in advance, scale production quickly, and manage logistics efficiently once results are known. For many, preparation for success is part of doing business in sports related retail.
While merchandise sales remain accessible for most fans, attendance at the game itself comes at a much higher cost. This week, secondary market listings showed single tickets starting around $6,700, with prices increasing for premium seating. Some season ticket holders have access to significantly lower face value prices through team lotteries, though availability is limited.
For WR members, the Seahawks’ return to the Super Bowl underscores how large-scale sporting events can boost retail activity, spotlight supply chain readiness, and drive short-term economic engagement across communities.
| | |
Retail federation urges action on credit card competition legislation
The National Retail Federation (NRF) recently renewed its call for Congress to advance the Credit Card Competition Act following its reintroduction in both chambers. The legislation is aimed at increasing competition in the credit card payments market, where most transactions are currently processed through a limited number of networks.
According to NRF, the bill would address concerns from retailers about credit card swipe fees, which are typically set by card networks and are not negotiable by businesses. These fees are applied to nearly every card transaction and can represent a significant cost for retailers of all sizes, particularly small and independent businesses.
Supporters of the legislation argue that requiring more competition among payment networks could help reduce transaction costs and improve transparency in the system. NRF has emphasized that increased competition could benefit not only retailers but also consumers, as lower processing costs may help businesses keep prices more affordable.
The Credit Card Competition Act is sponsored by a bipartisan group of lawmakers, reflecting ongoing interest across party lines in examining the structure and costs of the payments marketplace. Proponents say the bill is intended to create a more balanced environment for businesses while maintaining security and convenience for cardholders.
NRF has encouraged Congress to move forward with the legislation, citing rising swipe fees and their broader impact on the economy.
| | A photo of David Gama during a shoplifting incident at an Ulta Beauty store. (Courtesy King County Prosecuting Attorney’s Office) | | |
Organized retail theft case highlights enforcement and property crime trends
King County prosecutors have filed felony charges in an organized retail theft case involving repeated shoplifting incidents at Ulta Beauty stores across the region. The case centers on a King County resident accused of stealing merchandise from multiple locations over a period of nearly two months, prompting a coordinated investigation by law enforcement.
According to court filings, prosecutors charged the individual with three counts of first-degree organized retail theft following an investigation that documented 24 reported incidents between November 2025 and early January 2026. The alleged thefts occurred at Ulta stores in north Seattle, West Seattle, Tukwila, and Federal Way. Investigators estimate the total value of stolen merchandise at $18,426.80, with approximately $1,678.80 recovered at the time of arrest. A store manager also reported significant losses in fragrance products during the same period.
The King County Prosecuting Attorney’s Office noted that most shoplifting cases are classified as misdemeanors and are typically handled at the city level. Cases are referred for felony prosecution when evidence supports allegations of organized retail theft.
Prosecutors also pointed to broader trends in property and economic crime. In 2024, the office charged 506 cases where the most serious offense involved property or economic crime, up from 367 cases in 2023. In the most recent year reported, that number increased to 640 cases, marking the highest level since 2019.
For WR members, the case underscores ongoing challenges related to retail theft and the role of coordinated enforcement in addressing organized activity.
| | |
King County increases focus on repeat retail theft cases
King County prosecutors are filing more retail theft cases as part of a renewed effort to address repeat offenders who target the same stores across the Seattle region. Prosecutors report that 640 felony economic and property crime cases were charged in 2025, the highest total since 2019. That compares with 506 cases in 2024 and 367 in 2023. The increase is largely attributed to more cases being referred by law enforcement as officers have greater capacity to pursue nonviolent crimes.
Recent filings include multiple felony organized retail theft cases involving Ulta Beauty stores in North Seattle. According to charging documents, investigators allege repeated thefts of fragrances and other health and beauty products over a period of weeks, in some cases spanning locations from North Seattle to Federal Way. Surveillance footage, loss prevention records, and merchandise tracking technology were used to connect incidents across time and stores. Prosecutors note that small, high value items such as beauty products, electronics, and metals are frequently targeted because they can be concealed and resold quickly.
Retail theft has broader impacts beyond inventory loss. WR notes that theft affects employee safety, store operations, and ultimately consumer prices. Industry data cited by WR shows that 54% of retailers nationally report increases in theft by repeat offenders, and many retailers report that fewer than half of incidents are reported to police due to limited response or losses falling below felony thresholds.
A joint report from Challenge Seattle and WR describes organized retail theft as a repeat offender issue that often requires months of coordination among retailers, police, and prosecutors before cases can be combined for felony charges.
Looking ahead, retail groups are supporting HB 2209, legislation intended to strengthen tools for addressing organized retail theft, with a focus on repeat and higher impact offenders. Supporters say the bill is narrowly tailored and does not target everyday shoplifting.
| | |
Spokane Valley man sentenced to nearly five years for organized retail theft
A Spokane Valley man with an extensive criminal history has been sentenced to nearly five years in prison following convictions for organized retail theft. The case underscores ongoing efforts by law enforcement and prosecutors to address repeat retail theft offenses that affect local businesses and communities.
According to court records and a January 16, 2026 press release, Shannon B. Morley, age 61, was sentenced to 57 months in prison after being found guilty of two counts of second-degree organized retail theft. The convictions stem from incidents that occurred in March and May of 2023 at a truck stop on Broadway Avenue in Spokane Valley.
Investigators reported that surveillance video showed Morley using a key to access an electronic cabinet inside the store and removing a Garmin GPS device valued at nearly $1,000. The incidents were investigated by the Spokane County Sheriff’s Office and later referred for prosecution.
During sentencing, the State requested a sentence above the standard range, citing Morley’s long criminal record, which includes dozens of prior felony convictions along with additional misdemeanor offenses. Defense counsel asked the court to consider a Drug Offender Sentencing Alternative, arguing that substance use treatment would be more appropriate than a longer prison term.
Judge Rachelle Anderson denied that request, pointing to Morley’s history and the cumulative impact of repeated offenses on the community. She imposed two 57-month sentences to be served concurrently.
The case was prosecuted by the Spokane County Prosecuting Attorney’s Office with support from law enforcement and victim witness advocates. For WR members, the case illustrates how organized retail theft statutes are being applied in Washington courts and the role of coordinated enforcement in addressing repeat theft activity.
| | |
Retail theft underscores challenges for specialty retailers
A recent break in at a specialty retail store in Everett underscores ongoing concerns about retail theft affecting businesses locally and across the country. In early January, MuGu Games reported that an overnight burglary resulted in the loss of more than $30,000 in Pokémon trading cards. According to police, the incident occurred shortly before 1 a.m. and involved forced entry through a storefront window and a display case inside the shop.
Store owner Michael Doran said the stolen items included both graded and ungraded cards, some of which can hold significant value in the collector market. In addition to the merchandise loss, the damage to the building is expected to cost approximately $5,000 to repair. The store has since added additional security measures to reduce the risk of future incidents.
Doran noted that this was not an isolated event. Over more than a decade at the same location, the business has experienced multiple break-ins and theft-related incidents, particularly in recent years. As a result of the latest burglary, the store has temporarily halted sales of individual Pokémon cards, which had previously represented hundreds to thousands of dollars in daily revenue.
Law enforcement officials confirmed that the case remains under investigation, with a detective assigned, though no arrests had been made at the time of reporting. Industry observers note that collectible items such as trading cards can be difficult to trace when resold, especially when items lack unique identifying numbers.
The Everett incident reflects a broader pattern seen nationwide, where retailers of all sizes continue to balance customer access with rising security costs. For specialty retailers, repeated theft can pose challenges not only to inventory and finances but also to long term location and investment decisions.
| | |
Valentine’s Day retail trends to watch in 2026
Valentine’s Day remains a major moment for retailers in 2026, with U.S. consumer spending projected at $27.5 billion and average spending nearing $190. While the holiday continues to drive strong sales, recent marketing trends show a shift away from broad discounting toward more thoughtful and customer focused strategies.
One notable change is an expanded definition of who and what is celebrated. About one third of shoppers plan to purchase gifts for friends, themselves, or even pets. Retailers that acknowledge friendship, self-care, and appreciation alongside traditional romance are reaching a wider audience without creating new occasions.
Personalization has also become an expectation rather than a bonus. Shoppers respond to tailored recommendations, guided gift tools, and curated collections that simplify decision making and reduce stress. These approaches help customers feel confident while often increasing basket size.
Curated bundles and gift guides continue to perform well by clearly presenting value and relevance. By organizing products by recipient or price range, retailers make it easier for shoppers to navigate a crowded seasonal marketplace.
Interactive and gamified experiences are another area of growth. Quizzes, discovery tools, and interactive offers can capture attention and encourage engagement in ways that standard promotions often do not. These experiences also provide retailers with better insight into shopper preferences.
Finally, storytelling and community focused messaging are gaining traction. Campaigns that highlight humor, everyday moments, or customer appreciation tend to feel more authentic and inclusive.
For WR members, the takeaway is practical. Valentine’s Day success in 2026 is less about deep discounts and more about understanding customer intent, offering guidance, and creating experiences that feel personal and relevant.
| |
WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
| | |
Alesha Shemwell, Interim CEO — 360.200.6450 — Email
Crystal Leatherman, Dir of Policy & Government Affairs — 360.200-6453 — Email
Rose Gundersen, State and Local Gov't Affairs Associate — 360.200.6452 — Email
| | | | |
